China for early warning system locally to tackle fuel crisis

BEIJING: China has asked the local authorities to put in place an early warning system to tackle fuel shortages at filling stations in several parts across the country, state media reported.

Chinese Ministry of Commerce has ordered the local officials to closely monitor the oil market and take steps to deal with emergency fuel shortages but did not explain the warning system.

Fuel supply shortage has led to long queues and frayed tempers at filling stations in many parts amidst efforts by the government to ease the situation.

For the first time in 17 months, prices of gasoline, diesel and aviation kerosene were allowed to be hiked by almost 10 per cent to help oil firms cut losses caused by the gap between soaring international crude prices and state-controlled prices at which they have to supply in the domestic market.

Experts have said government should reform the oil pricing mechanism to reflect international levels and allow oil firms to transfer the cost to customers.

But the government is wary with the inflation rate already reaching 6.5 per cent in October, equaling an 11-year monthly high of August figure.